All Forum Posts by: Erickson Sainval

The lowest amount you can, but 1-2% is good.

There are consultants, mentors, coaches, and such that will do just that. You must VET them heavily to ensure you are not being swindled. Of course, the most important step though is to invest in yourself and learn what you are trying to do. Look for books, network with others that are doing what you would like.

It all depends on how much work you three are willing to do. If you just want it to end as quickly as possible talk with a CPA or tax professional. Once they provide you with the best tax saving options you can make a decision. When dealing with multiple people, the simple and easy way it to go. You do not want to go into repairs and come to a point where one party stops contributing or wants to sell right away because of an emergency. It is better to sell as is, get your money, pay the taxes, and move on.

I like the Scottsdale area, I'd definitely take a look.

In cases like this where one brings in money and the other does all the work, I see it as a 50/50 split IMO.

LLC is more for protection and in some way choose at what your taxed and how based on your selection of being a S or C corp.

Real estate pro is a exception which in itself has a lot of advantages in lowering your taxable income.

You should try to use both these things to take full use of the benefits. It's not really picking one over the other. 

I am also not a CPA or tax professional.

If a 9% CoC works for you than it could be a good deal. I would suggest shooting for 12 or more.

In terms of security, I would get the duplex. It will provide cashflow and with the rented side, you can live for free. From there you can focus on flipping, IMO.

It will depend on the tenant screening, the good thing about small towns is that they stay forever. You have to look at median house income and median home price. If people can afford a home, they will not rent. Do a lot of market research to make sure it works out. Numbers without the actual economic information behind it won't help. 

I would look to see if you can seller finance unless you can find a lender willing to loan that low.

A contract as simple as 3500 down so you leave some money for any unforeseen things, 5% interest, 30 year amortized. 

Not bad at all, great work. 5 Year turn around, not many have the patients, but it payed off.